Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2019

Real Estate And Accumulated Depreciation Disclosure [Abstract]

Real Estate and Accumulated Depreciation

PROLOGIS, INC. AND PROLOGIS, L.P.

SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2019

(In thousands of U.S. dollars, as applicable)

				Initial Cost to Prologis				Costs Capitalized		Gross Amounts at Which Carried at December 31, 2019
Description	No. of Bldgs.		Encum- brances	Land		Building & Improvements		Subsequent to Acquisition		Land		Building & Improvements		Total (a,b)		Accumulated Depreciation (c)			Date of Construction/ Acquisition
Operating Properties (d)
U.S. Markets
Atlanta	101		(d)		216,372		829,879		272,839		218,105		1,100,985		1,319,090		(206,478	)	1994-2019
Austin	10				12,783		52,335		7,859		12,837		60,140		72,977		(22,921	)	1994-2015
Baltimore/Washington D.C.	52		(d)		140,823		384,274		149,324		141,824		532,597		674,421		(98,377	)	1995-2019
Central and Eastern Pennsylvania	42				252,910		843,408		185,974		258,473		1,023,819		1,282,292		(197,112	)	2002-2018
Central Valley	30		(d)		145,885		386,853		512,850		156,628		888,960		1,045,588		(152,639	)	1999-2019
Charlotte	16		(d)		15,202		32,889		60,584		17,465		91,210		108,675		(40,658	)	1994-2015
Chicago	186		(d)		585,670		1,858,769		358,871		597,329		2,205,981		2,803,310		(518,779	)	1995-2019
Cincinnati	28		(d)		51,705		197,745		101,688		54,820		296,318		351,138		(46,498	)	1996-2019
Columbus	23		(d)		24,685		121,369		52,230		25,078		173,206		198,284		(75,937	)	1996-2015
Dallas/Fort Worth	135		(d)		250,306		1,010,176		298,476		252,403		1,306,555		1,558,958		(324,685	)	1994-2019
Denver	35				92,128		295,412		103,038		90,534		400,044		490,578		(106,338	)	1993-2019
Houston	105		(d)		171,533		713,667		140,145		171,601		853,744		1,025,345		(164,396	)	1993-2018
Indianapolis	19				15,970		85,015		42,463		15,970		127,478		143,448		(47,598	)	1995-2018
Jacksonville	1				-		2,892		273		-		3,165		3,165		(2,221	)	2011
Kansas City	2				-		14,411		202		-		14,613		14,613		(8,891	)	2011
Las Vegas	50				114,573		261,616		156,548		109,231		423,506		532,737		(76,356	)	1996-2018
Louisville	11				42,979		226,263		45,185		43,285		271,142		314,427		(64,026	)	2005-2015
Nashville	22				61,699		268,238		44,912		63,288		311,561		374,849		(45,442	)	1995-2019
New Jersey/New York City	106		(d)		864,493		1,514,057		476,276		862,577		1,992,249		2,854,826		(494,401	)	1996-2019
Orlando	48				82,256		320,781		65,185		82,683		385,539		468,222		(75,025	)	1994-2018
Phoenix	29				48,572		176,656		50,042		48,563		226,707		275,270		(53,561	)	1992-2018
Portland	17		(e)		37,921		104,290		19,199		36,583		124,827		161,410		(29,923	)	2006-2019
Reno	17		(d)		23,919		143,324		88,307		25,393		230,157		255,550		(68,685	)	1994-2015
San Antonio	20		(d)		25,735		95,828		40,425		25,958		136,030		161,988		(51,898	)	1994-2016
San Francisco Bay Area	211		(d)		816,163		1,523,357		321,069		821,459		1,839,130		2,660,589		(589,850	)	1993-2019
Seattle	87		(e)		592,228		977,905		287,168		612,918		1,244,383		1,857,301		(178,380	)	2008-2019
South Florida	99		(d)		369,762		746,107		198,663		375,397		939,135		1,314,532		(206,516	)	1994-2019
Southern California	309		(d)(e)		2,545,605		3,857,820		921,231		2,626,752		4,697,904		7,324,656		(1,144,891	)	2005-2019
Subtotal U.S. Markets:		1,811			7,601,877		17,045,336		5,001,026		7,747,154		21,901,085		29,648,239		(5,092,482	)
Other Americas Markets
Canada	32		(d)		220,424		381,013		264,917		246,296		620,058		866,354		(109,179	)	2008-2019
Mexico		10			100,826		2,287		124,353		105,421		122,045		227,466		(3,921	)	2011-2019
Subtotal Other Americas Markets:		42			321,250		383,300		389,270		351,717		742,103		1,093,820		(113,100	)
Europe Markets
France	5				9,629		4,804		41,476		8,360		47,549		55,909		(2,985	)	2012-2019
Germany	2				10,437		5,418		601		10,437		6,019		16,456		(3,689	)	2011
Spain	5				6,396		36,341		12,280		6,696		48,321		55,017		(13,203	)	2011-2017
U.K.	2				58,255		27,775		1,969		58,259		29,740		87,999		(1,679	)	2018-2019
Subtotal Europe Markets:		14			84,717		74,338		56,326		83,752		131,629		215,381		(21,556	)
Asia Markets
China	2				1,372		8,320		109		1,148		8,653		9,801		(2,376	)	2011
Japan	2		(d)		33,871		-		145,682		36,437		143,116		179,553		(10,094	)	2016-2019
Singapore	5				-		137,142		3,897		-		141,039		141,039		(54,604	)	2011
Subtotal Asia Markets:		9			35,243		145,462		149,688		37,585		292,808		330,393		(67,074	)
Total Operating Properties		1,876			8,043,087		17,648,436		5,596,310		8,220,208		23,067,625		31,287,833		(5,294,212	)

PROLOGIS, INC. AND PROLOGIS, L.P.

SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2019

(In thousands of U.S. dollars, as applicable)

				Initial Cost to Prologis				Costs Capitalized		Gross Amounts at Which Carried at December 31, 2019									Date of
Description	No. of Bldgs.		Encum- brances	Land		Building & Improvements		Subsequent to Acquisition		Land		Building & Improvements		Total (a,b)		Accumulated Depreciation (c)			Construction/ Acquisition (f)
Development Portfolio
U.S. Markets
Atlanta	1				3,209		-		451		3,209		451		3,660
Baltimore/Washington D.C.	2				4,005		-		9,125		4,005		9,125		13,130
Central Valley	3				14,705		-		60,894		14,705		60,894		75,599				2019
Chicago	3				11,839		-		25,166		11,839		25,166		37,005				2019
Cincinnati	1				750		119		8,232		750		8,351		9,101				2019
Dallas/Fort Worth	5				4,926		-		25,566		4,926		25,566		30,492				2019
Denver	2				13,845		-		31,182		13,845		31,182		45,027				2019
Houston	1				1,672		-		2,401		1,672		2,401		4,073
Indianapolis	1				1,969		-		-		1,969		-		1,969
Las Vegas	2				17,544		-		29,391		17,544		29,391		46,935				2019
Louisville	1				1,788		-		351		1,788		351		2,139
Nashville	1				5,668		-		17,106		5,668		17,106		22,774				2019
New Jersey/New York City	1		(d)		40,963		-		37,821		40,963		37,821		78,784				2019
Orlando	4				24,340		-		16,852		24,340		16,852		41,192
Phoenix	8				43,651		-		42,841		43,651		42,841		86,492				2019
Portland	2				12,959		-		3,588		12,959		3,588		16,547
Reno	1				1,471		-		1,207		1,471		1,207		2,678
San Francisco Bay Area	6				44,177		7,532		77,060		44,177		84,592		128,769				2019
Seattle	2				31,495		-		19,116		31,495		19,116		50,611
South Florida	2				15,145		-		25,037		15,145		25,037		40,182				2019
Southern California	5				38,264		-		135,409		38,264		135,409		173,673
Subtotal U.S. Markets:		54			334,385		7,651		568,796		334,385		576,447		910,832
Other Americas Markets
Canada	1				10,346		-		1,408		10,346		1,408		11,754
Mexico	4				25,890		-		26,911		25,890		26,911		52,801				2019
Subtotal Other Americas Markets:		5			36,236		-		28,319		36,236		28,319		64,555
Europe Markets
Czech Republic	2				7,176		-		18,356		7,176		18,356		25,532				2019
France	4				14,108		-		30,327		14,108		30,327		44,435				2019
Germany	4				16,456		-		27,540		16,456		27,540		43,996				2019
Italy	7				42,451		-		17,010		42,451		17,010		59,461
Netherlands	7				31,468		-		47,771		31,468		47,771		79,239				2019
Poland	4				11,318		-		35,792		11,318		35,792		47,110				2019
Slovakia	2				4,614		-		29,756		4,614		29,756		34,370				2019
Spain	1				10,184		-		11,259		10,184		11,259		21,443				2019
Sweden	1				6,054		-		4,550		6,054		4,550		10,604
U.K.	7				124,163		-		17,672		124,163		17,672		141,835
Subtotal Europe Markets:		39			267,992		-		240,033		267,992		240,033		508,025
Asia Markets
Japan	7		(d)		164,827		-		221,028		164,827		221,028		385,855				2019
Subtotal Asia Markets:		7			164,827		-		221,028		164,827		221,028		385,855
Total Development Portfolio		105			803,440		7,651		1,058,176		803,440		1,065,827		1,869,267
GRAND TOTAL		1,981			8,846,527		17,656,087		6,654,486		9,023,648		24,133,452		33,157,100		(5,294,212	)

Schedule III – Footnotes

(a) The following table reconciles real estate assets per Schedule III to the Consolidated Balance Sheets in Item 8. Financial Statements and Supplementary Data at December 31, 2019 (in thousands):

Total operating properties and development portfolio per Schedule III	$	33,157,100	(g)
Land		1,101,646
Other real estate investments		965,668
Total per Consolidated Balance Sheets	$	35,224,414

(b) The aggregate cost for federal tax purposes at December 31, 2019, of our real estate assets was approximately $23.5 billion (unaudited).

(c) Real estate assets (excluding land balances) are depreciated over their estimated useful lives. These useful lives are generally 5 to 7 years for capital improvements, 10 years for standard tenant improvements, 15 to 25 years for depreciable land

improvements, 25 to 35 years for operating properties acquired based on the age of the building and 40 years for operating properties we develop.

The following table reconciles accumulated depreciation per Schedule III to the Consolidated Balance Sheets in Item 8. Financial Statements and Supplementary Data at December 31, 2019 (in thousands):

Total accumulated depreciation per Schedule III	$	5,294,212	(g)
Accumulated depreciation on other real estate investments		143,450
Total per Consolidated Balance Sheets	$	5,437,662

(d) Properties with an aggregate undepreciated cost of $1.7 billion secure $557.0 million of mortgage notes. See Note 8 to the Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data for more information related to our secured mortgage debt.

(e) Assessment bonds of $10.9 million are secured by assessments (similar to property taxes) on various underlying real estate properties with an aggregate undepreciated cost of $601.9 million. The assessment bonds are included in term loans and unsecured other debt in Note 8 to the Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data.

(f) Date of construction is provided for properties in the development portfolio that were completed but not yet stabilized.

(g) The following table summarizes our real estate assets and accumulated depreciation per Schedule III for the years ended December 31 (in thousands):

	2019			2018			2017
Real estate assets:
Balance at beginning of year	$	32,774,956		$	24,178,816		$	25,375,539
Acquisitions of and improvements to operating properties, development      activity and net effect of changes in foreign exchange rates and other		2,821,919			10,106,651			2,680,484
Basis of operating properties disposed of		(1,471,764	)		(1,461,458	)		(3,697,798	)
Change in the development portfolio balance, including the acquisition of      properties		(273,534	)		549,312			161,408
Assets transferred to held for sale and contribution		(694,477	)		(598,365	)		(340,817	)
Balance at end year	$	33,157,100		$	32,774,956		$	24,178,816
Accumulated depreciation:
Balance at beginning of year	$	4,550,958		$	3,971,501		$	3,679,479
Depreciation expense		843,872			703,215			614,756
Balances retired upon disposition of operating properties and net effect of      changes in foreign exchange rates and other		(77,583	)		(119,029	)		(313,584	)
Assets transferred to held for sale and contribution		(23,035	)		(4,729	)		(9,150	)
Balance at end of year	$	5,294,212		$	4,550,958		$	3,971,501